Ford exits heavy commercial truck production in South America

Ford will close its oldest Brazilian factory in São Bernardo do Campo and shut down its heavy truck business in South America as part of the company’s restructuring program. The São Paulo plant produces the F-4000 and F-350 models (see the images below), as well as the Fiesta small car. The move could cost more than 2,700 jobs.

Last October the company also announced it will stop producing Focus compact cars in Argentina from May 2019 as part of plans to reduce losses in the region. According to Reuters the cuts come as investors watch for signs of progress on the company’s alliance with Volkswagen AG, which already includes pickup trucks and commercial vans but may soon expand into electric and self-driving cars.

News of the the factory closure did not harm the company’s share price, which was up 3.4% to US$8.83 in New York yesterday. 

Ford’s light truck and car sales grew 10% in 2018 in Brazil year-on-year. However, according to Anfavea data (Brazil’s National Automobile Manufacturers Association), Brazil’s vehicle production has suffered due to a substantial drop in vehicle exports. Brazil’s total vehicle exports in January were down 46% to only 25,000 units year-on-year.

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